Forex Trading Terms

Description of the Broker's Trading Conditions

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.


Trading on certain instruments to be limited to “Close Only” mode
Trading on certain instruments to be limited to “Close Only” mode

Dear clients, We would like to bring to your attention that from 27/06/17, for ecn.mt4, pro.ecn.mt4 and ecn.mt5 accounts, trading on the following instruments will be limited to &ldq...

Tickers changed in Grand Capital trading terminal
Tickers changed in Grand Capital trading terminal

Dear clients and partners!  For your convenience, CFD tickers for futures contracts in Grand Capital trading terminal are going to be changed. For a period of time both new and ...

https://alfaforex.com/en/about/news/gbp-instruments-leverage-will-be-reduced/
https://alfaforex.com/en/about/news/gbp-instruments-leverage-will-be-reduced/

Dear clients! Deep uncertainty after the parliamentary elections in Great Britain may provoke volatility surge.  In order to protect clients from probable consequences, Alfa-For...

Reduction of the margin requirements for Sterling currency pairs
Reduction of the margin requirements for Sterling currency pairs

Dear Clients,    Following the uncertainty posed by the United Kingdom general election, 2017, and given that market implied volatility in Sterling (GBP) currency pairs as ...

Important Notice – UK General Election
Important Notice – UK General Election

We would like to inform our clients that considering our recent notification regarding the UK General Election, the margin requirements on all instruments have been automatically rea...

Important Notification: French Legislative Election
Important Notification: French Legislative Election

We would like to inform our clients that the upcoming French Legislative Election, which will take place on 11th June 2017, will possibly lead to extreme market volatility, thin mark...

Leverage reduction before the parliamentary elections in the UK!
Leverage reduction before the parliamentary elections in the UK!

Dear clients! June 8, 2017, Great Britain will hold parliamentary elections.  In order to protect clients from volatility surge, the leverage will be reduced from the current va...

Trading Conditions Adjustment Towards June 8th UK Election
Trading Conditions Adjustment Towards June 8th UK Election

FXOptimax will adjust its trading conditions towards UK Election on June 8th, 2017. The adjustment may affect your leverage or margin requirement and we will announce further updates...

Potential changes to trading conditions due to risks of high volatility during the British election
Potential changes to trading conditions due to risks of high volatility during the British election

Dear clients, On the 8th of June, the United Kingdom will hold its parliamentary elections. This may lead to high market volatility, which, coupled with low liquidity, will increase ...

Increase in margin requirements in connection with the elections in the UK 06.06.2017, 15:57
Increase in margin requirements in connection with the elections in the UK 06.06.2017, 15:57

June 8 in the UK will be held in parliament. In this regard, the market may have high volatility, coupled with low liquidity, which increases the degree of risk in the performance of...

Changes to Trading Terms Throughout the Period of the UK General Election
Changes to Trading Terms Throughout the Period of the UK General Election

June 07, 2017 09:56 Dear trader, The UK General Election of 2017 is scheduled to take place on Thursday, 8 June 2017. Following the expectations of increased market volatility and po...

Russia Day: RUB Instruments Unavailable for Trading
Russia Day: RUB Instruments Unavailable for Trading

June 06, 2017 15:58 Dear trader, We would like to inform you that RUB instruments will not be available to trade with on Russia Day, 12 June. For further details, see the table below...

High Volatility: GBP, Crude Oil
High Volatility: GBP, Crude Oil

Dear SuperForex customers, Please note that due to the preliminary parliamentary elections in the United Kingdom on June 8, as well as the recent terrorist attack in London there wil...

Changes to the trading conditions for standard.mt5 accounts
Changes to the trading conditions for standard.mt5 accounts

Dear clients, We would like to inform you that on 06/06/2017, some changes will be made to the trading conditions on the standard.mt5 account type. If, on Friday, trading and non-tra...

Important changes in trading conditions due to the upcoming United Kingdom general election, 2017
Important changes in trading conditions due to the upcoming United Kingdom general election, 2017

Dear Customers!   Due to the upcoming general election in United Kingdom on June 8th 2017, it is expected that volatility in financial markets is likely to rise, in particular i...

DAX30 instrument unavailable for trading due to national holiday
DAX30 instrument unavailable for trading due to national holiday

Dear clients, We would like to inform you that on the 5th of June, 2017, the DAX30 instrument will be unavailable for trading due to Whit Monday celebrations taking place in Germany....

Earn up to 100% profit in 30 seconds. Yes really!
Earn up to 100% profit in 30 seconds. Yes really!

Dear clients, We would like to inform you about our "100% in 30 seconds" offer. From the 1st of June until the 31st of August, the payout on all spread options will be incr...

"High payout month" offer for alpari.binary accounts

Dear clients, We're starting a new offer, previously unheard of in the binary options industry. From the 1st to the 30th of June, 2017, we're offering a 90% payout on all cal...

New CFD commodities launched for trading on LIVE
New CFD commodities launched for trading on LIVE

Dukascopy is glad to announce the launch of Natural Gas to US Dollar (GAS.CMD/USD) and High Grade Copper to US Dollar (COPPER.CMD/USD) for regular LIVE self trading accounts. Maximum...

Change in Dividend Adjustment Terms
Change in Dividend Adjustment Terms

Dear clients, From March 30, 2017, the terms will be changed for adding the positive dividend adjustment while executing trading transactions involving CFD on stocks. The positive ad...


Description of the Broker's Trading Conditions

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.

Trading Conditions of Forex Brokers

A main goal of the conditions provided by the companies is satisfaction of traders' requests, irrespective of their experience and skills in the sphere of currency transactions. Today brokers try to consider all current trends and Forex market requirements, providing a set of flexible options for carrying out an effective trading activity, informing clients in news blocks, both on the accompanying changes, and at the start of new tools and conditions. The most important trading conditions are given in this material.

  • Margin Call level, i.e. the level of a necessary margin when the broker can compulsorily close open deals of the trader, without notifying the client;
  • Stop Out level means the level of a necessary margin in case of which trading open deals are closed by the current broker quotes;

Types of Order Execution:

  • Instant Execution when execution of the order takes place at the price offered the broker. If the broker agrees with the price, the order will be performed, in case of rejection of the price by the broker, there is "requoting" (Requote) – the broker returns back suggested price;
  • Execution by Market in the case of this mode of order execution the broker makes the decision on its price, without its regulation with the trader;
  • Execution on Request when the broker informs the trader on execution of the order on stated price.
  • Stop Level determined in the pips(points) from market price. Behind borders of this level the broker allows to establish Take Profit or Stop Loss for the carried-out order;
  • Quoting type (five-digit or four-digit). Quoting with 4 signs after a comma is the most popular, five-digit in turn, interferes with accurate visual estimation of a condition of the fast market;
  • Minimum size of the deposit . When exists an option to open account with only several dollars, the beginner can practice in actual transactions, and more experienced trader to check both Forex trading strategies, and conditions of still unfamiliar company without special risks.